Liquidity Pool

Create Pools and Earn

Liquidity pools provide a passive income each time a trader completes a transaction in your pool.

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Trading Crypto

About Liquidity Pools

A liquidity pool is a collection of piles of crypto tokens or funds secured in a smart contract so traders can exchange their digital assets at any time.

It is a pool where anyone can deposit their funds and receive rewards or tokens in exchange for providing liquidity to the Riverex platform.

The transaction relies on an Automated Market Maker (AMM) protocol, an algorithm that automatically sets the price of digital assets.

The AMM algorithm ensures that both asset prices in the pool maintain their value-to-price ratio at a constant of 1:1, providing a balanced market price.

Benefits of Liquidity Pools

Liquidity in the Market

Users are not required to connect to other traders and search for a specified asset price. The AMM algorithm adjusts the price of the tokens based on the asset proportion in the pool.

Better Price Balance

Since users transact in a pool instead of another trader, they avoid sellers who demand high market prices or buyers who devalue the market price, providing a smoother and balanced market for every trader.

Passive Income

For HODLERS, this is one great way to earn passive income by locking their funds in the pool. Users can create or add funds to a pool; the liquidity provider earns a percentage whenever traders swap their tokens in the pool.

Frequently Asked Questions

You can become a Liquidity Provider by depositing your funds in a pool or creating your own pool.
We have curated a detailed explanation here to help you understand liquidity pools more.
Liquidity in cryptocurrency lowers investment risks and makes it easier for you to sell your assets. It also makes it hard to manipulate asset prices, offering stability in prices and less volatility.
High liquidity denotes a healthy, stable market where traders may transact quickly, readily, and fairly.
If you are the liquidity creator, you can set the LP Fee percentage from 0-10%. If you are adding liquidity to a pool, your commission is based on what the creator sets; so before you add your funds to a pool, it is recommended to also check the lists of pools along with their corresponding fees.